Many Happy Returns

Sorting Through Store Refund And Exchange Policies

"Too big." "It doesn't match my eyes." "It was a gift." "I have one already." "It's just not me."

What's a retailer to do?

With or without a receipt or a tag, the customer is usually right.

Take the clerk at a Michigan Avenue retail store who recalls a celebrity who returned a high-priced evening gown: "It was not only worn, but I saw a photo of her in the paper wearing it at a gala ball."

Was a refund issued? "Yes," she stammered, "and without a question!"

Suffice it to say, the edict "All sales are final" simply does not exist, at least not in upscale department stores.

Abusing the policies

But are customers abusing these liberal return policies?

At least one retailer, Marshall Field's, thought so. In May, Field's-as part of a plan initiated by its parent, Dayton Hudson Corp.-modified its policy of giving cash back even if the customer didn't have a receipt. Now, provided proper identification is shown, the customer instead will receive a refund via either a check issued in 10 days or a credit on a charge account.

Company representative Sue Sorensen said the move was spurred by sales consultants who had "expressed frustration" about individuals blatantly abusing the policy. To take a closer look, Field's formed a task force that consisted of management, customer service and loss prevention experts.

What they found were some loopholes. "Merchandise was being returned that was not purchased from our store but from some other retailers, and cash was requested for the return. Or people were returning merchandise without proof of purchase that had been stolen from our stores. They were requesting on-the-spot cash refunds," explained Sorensen, who said it was "impossible" to determine the number of such incidents.

She says the new policy will "greatly curb" the ability of people to abuse the system, though she added that it's too early to tell how much of an impact the change has had.

In September, people returning merchandise to Field's without a receipt will receive, via an electronic system at the register, vouchers for Field's merchandise-not cash. The investment for this system will be costly, but Sorensen said the move was a good business decision that "will not" have a negative impact on customer service.

Russ Salzman, executive director of the Greater North Michigan Avenue Association, which represents the interest of 425 retailers with 1992 annual sales of more than $1 billion, says loss prevention "continues to be an area that gains much focus in store management."

"The retail industry is experiencing some stressful times in the '90s," he said, "and as public/private corporate retailers seek to maximize their profits and returns on investment, they examine all areas of their business operations-from personnel to advertising and from operations to return policies. It's not like there's more thefts on Michigan Avenue, but it's a business issue that is more liberal and needs to be evaluated."

Shoplifting up

A glance at the FBI Crime Index shows where some of that stress is coming from. It reveals that shoplifting increased 18 percent from 1987 through 1991 and that the average value per stolen item per shoplifting incident was $104. Shoplifting accounts for 16.5 percent of larcenies in the country, with Western states reporting the highest rate, 19 percent; followed by the South, 17.3; Northeast, 14.3; and Midwest, 14.

Many retailers have responded with numerous and sometimes costly anti-shoplifting measures, including security guards/detectives, closed-circuit monitors, alarms, mirrors, observation booths, security tags and fitting room attendants, but, in the Chicago area anyway, most have not changed their return policies-despite what Field's has done to keep shoplifters from returning their stolen goods for cash or credit.

Here's a sampling of return policies at some of the major retailers in the Chicago area. To remain competitive, the policies are all designed to accept for exchange, repair or return any merchandise that a customer is not satisfied with.

Also, "adjustments" on items being returned that have gone on sale within 10 days of purchase can be made. If the customer shows a receipt, he or she can either repurchase the item at the sales price or receive a credit adjustment, in cash or on a charge account.

But buyers should beware: Return circumstances are often unique, so a retailer's policy may vary.

( ) Bloomingdale's. Without a tag or a receipt, customers get cash back up to $35; otherwise a check will be issued three weeks from the date of return or credit will be applied to the charge account.

The price the returned item was bought for will be applied, unless the item has been marked down by the date of return.